Executor duties

 Executor duties  

         It is our recommendation that Executors undertake the following measures:

 

         1.  Conduct a thorough search of the decedent's personal papers and effects for any evidence, which might point you in the direction of a potential creditor;

         2.  Carefully examine the decedent's checkbook and check register for recurring payments, as these may indicate an existing debt; and assets

         3.  Contact the issuer of each credit card that the decedent had in his/her possession at the time of his/ her death; and cancel card

         4.  Contact all parties who provided medical care, treatment, or assistance to the decedent prior to his/her death; and pay undisputed bills after submitted to insurance company

 

Other upcoming duties/ Executor to Do

 

Notice of Probate to Beneficiaries  (Attorney will handle)

If charity, notice to Atty General

 

File notice of Probate with Surrogate (Attorney will handle)

 

Apply to Federal Tax ID  if there will be several beneficiaries- Either Executor or Attorney can handle

 

Set up Estate Account at bank (pay all bills from estate account)

 

Type up list of all assets and all liabilities

Email list to beneficiaries if applicable

 

Pay Bills  

         List real estate for sale and have attorney prepare, Deed, Affidavit of title and other document

 

-If mortgage, contact mortgage company for payoff

 

File first Federal and State Income Tax Return [CPA- ex Marc Kane]

 

Prepare Inheritance Tax Return and obtain Tax Waivers (Attorney will handle)

 

Sell applicable assets

 

If house, select realtor to sell house “as is”

 

File NJ Tax waivers on real property with County Clerk (Attorney will handle)

 

Prepare Informal Accounting after assets sold

 

Prepare Release and Refunding Bond for all beneficiaries to sign (Attorney will handle)

   

Obtain Child Support Judgment clearance (Attorney will handle if needed)

 

File Release and Refunding Bond with Surrogate after all beneficiaries sign.

 

         Let's review the major duties involved, which we've set out below.

 

In General. The executor's job is to (1) administer the estate--i.e., collect and manage assets, file tax returns and pay taxes and debts--and (2) distribute any assets or make any distributions of bequests, whether personal or charitable in nature, as the deceased directed (under the provisions of the Will). Let's take a look at some of the specific steps involved and what these responsibilities can mean. Chronological order of the various duties may vary.

 

 Probate. The executor must "probate" the Will. Probate is a process by which a Will is admitted.  This means that the Will is given legal effect by the court.  The court's decision that the Will was validly executed under state law gives the executor the power to perform his or her duties under the provisions of the Will.

 

         An employer identification number ("EIN") should be obtained for the estate; this number must be included on all returns and other tax documents having to do with the estate.  The executor should also file a written notice with the IRS that he/she is serving as the fiduciary of the estate.  This gives the executor the authority to deal with the IRS on the estate's behalf.

 

  Pay the Debts.  The claims of the estate's creditors must be paid.  Sometimes a claim must be litigated to determine if it is valid.  Any estate administration expenses, such as attorneys', accountants' and appraisers' fees, must also be paid.

 

  Manage the Estate. The executor takes legal title to the assets in the probate estate. The probate court will sometimes require a public accounting of the estate assets. The assets of the estate must be found and may have to be collected. As part of the asset management function, the executor may have to liquidate or run a business or manage a securities portfolio. To sell marketable securities or real estate, the executor will have to obtain stock power, tax waivers, file affidavits, and so on.   

 

  Take Care of Tax Matters. The executor is legally responsible for filing necessary income and estate-tax returns (federal and state) and for paying all death taxes (i.e., estate and inheritance). The executor can, in some cases be held personally liable for unpaid taxes of the estate. Tax returns that will need to be filed can include the estate's income tax return (both federal and state), and the deceased's final income tax return (federal and state). Taxes usually must be paid before other debts. In most instances, federal estate-tax returns are not needed as the size of the estate will be under the amount for which a federal estate-tax return is required.

 

       Child Support Lien Search Request.  Prior to individuals receiving money Federal law requires a child support lien search so each beneficiary will need to provide their Social Security number prior to inheritance. Your attorney can handle this, upon request. If child support is owed, and not deducted from the person's inheritance, the executor can be personally liable. Each beneficiary must sign a "Release and Refunding Bond" to distribute the assets. Otherwise, formal Court approval is required to finalize the estate to distribute the assets. After all debts and expenses have been paid, the executor will distribute the assets. Frequently, beneficiaries can receive partial distributions of their inheritance without having to wait for the closing of the estate, provided they sign a Partial Release & Refunding Bond.